But, it is different this time.
That's what they said last time :) ... I'm just saying...it will be a painful shakeout if this lasts more than a few months. I've already won a bet when I said it would go below $75 and that was over a month ago. I don't see the buyers coming back until it is at or near $60 - that's little consolation to the mineral owners who will see a sharp rise in post-production expenses - some legitimate, many not. I've seen too many "No Post Production Expense" clauses where the company simply reduced the market price to $1 less than everyone else's MV. And you know what company I'm talking about.
TL, Russia is highly dependent on higher oil prices. In 2012, Russia granted tax incentives to the Russian oil and gas company Gazprom, but oil has to stay above $80 for Gazprom to develop the 530-million barrel Prirazlomnoye field in the Pechora Sea. Gazprom is the world's largest natural gas producer and possesses the largest gas transport system in the world. The US is counting on low oil prices hurting Russia more than the US. On 21 May 2014, Gazprom and China's China National Petroleum Corporation signed a 30 year deal estimated at $400 billion. This deal is expected to deliver about 38 billion cubic meters of natural gas a year to China and will start around 2018. The two sleeping giants, Russia and China have finally awakened. US energy independence depends on high netback US shale production and Europe is depending on US NGL exports. http://www.gazprom.com/